(Corrects to remove the reference to PPI in the headline)
Aug 21 (Reuters) - UK's Financial Conduct Authority (FCA)will announce a compensation scheme on Thursday for customerswho bought identity theft and credit card protection fromBritish credit card insurer CPP Group, Sky Newsreported on Wednesday.
Sky News reported the FCA is set to announce that about adozen financial institutions - including Barclays,Lloyds Banking Group, HSBC and Royal Bank ofScotland - have signed up to the deal.
Citing sources, Sky News said the compensation figurecontained in FCA's statement could be between 1 billion pounds($1.57 billion) and 1.5 billion pounds.
FCA declined to comment on the report. CPP could not beimmediately reached for comment outside regular working hours.
Under the agreement, banks, which sold CPP products willwrite to customers to inform them that they may be eligible forcompensation, Sky News said.
Some of the banks involved will make separate announcementsdetailing their individual financial exposure, Sky News said.
CPP customers will have to vote in favour of the agreementbefore it can go ahead.
($1 = 0.6374 British pounds) (Reporting by Karen Rebelo in Bangalore; editing by DavidEvans)
Barclays (BARC)
Lloyds (LLOY)
HSBC Holdings (HSBA)
